Daily Technical Forex Forecast 04.12.2018


EUR/USD

The Euro did not demonstrated any significant movements yesterday and the pair is still trading inside the local range between 2 strong volume levels. They are the support level 1.1267 and the resistance level 1.1463.

Thus, we can ponder new deals only after the sure and sharp exit of the price from the consolidation. Moreover, the breakout movement must be supported by the large volume, which will be a more secure and precise signal for entering the market.

GBP/USD

The Pound showed a rapid and sharp decline and broke down the previous support level yesterday, which is an excellent bearish signal. Unfortunately, the pair was falling on the small volume, so we cannot open short positions at the moment.

Thus, we can open sales only after the appearance of an additional signal – the resumption of a sharp decline, but the movement should be on the large volume, which will be a more accurate and reliable signal to enter the market. A stop loss should be placed just above the beginning of this movement. The potential of the deal is more than 120 points.

USD/JPY

The Yen tested the level of resistance 113.62 – 113.75, after which the price fell down strongly. At the moment the pair is trading in the middle of the consolidation between this level and the previous level of support 112.35. Hence, we can open new deals only after the breakout of one of these levels and the exit of the price from the range. The breakout move must be keen and supported by the large volume, which will insure us against a fake breakout.

USD/CAD

The Canadian dollar showed a sharp sink on the increased volume and is trading near the level of support 1.3144. Therefore, we can and should regard a scenario of its breakout, which will be a great bearish signal. The movement must be sharp and supported by the large volume, which will be a more reliable signal for entering the market. A stop loss should be placed above the breakdown volume bar. A potential of the deal is more than 100 points.

AUD/USD

The Australian dollar opened with a gap and broke out the previous resistance level, which is a good bullish signal. However, the further move was stopped by the creation of the new volume level 0.7383. Thus, we can open long positions only after the confident and sharp breakout of this mark. The surge must be supported by the large volume, which will insure us against a false breakout. A stop loss should be placed below the breakout volume bar. A potential of the deal is more than 80 points.

XAU/USD

Gold grew up and broke out the resistance level. Furthermore, the breakout movement was supported by the large volume, which is a great bullish signal. So given these factors, we should prefer a scenario of opening long positions.

We can enter the market after a smooth correction of the price down, in order to get a more profitable entry point. A stop loss should be placed below the beginning of the sharp growth. A potential of the deal is more than 150 points.

The sentiment: this indicator affirms all our trading scenarios, which is a good additional signal. The situation with gold is 50/50, so we should be more careful. As with all other instruments, we can consider new positions only after the confident exit of prices from local consolidation.